By Chukwuma Umeorah
The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has emphasized the role of leveraging green finance solutions in facilitating Nigeria’s transition to a sustainable and low-carbon economy.
During a capacity development workshop for capital market operators in Lagos on Tuesday, Agama outlined the key conditions needed to foster private sector investment in green finance. According to him, “It is imperative to provide transparent and reliable information about green financial products to build investor trust, improve access for retail investors, incentivize market participants to focus on long-term risks and opportunities, and ensure robust regulatory and policy support to enable innovative green finance solutions.”
The workshop is part of an ongoing capacity-building initiative administered by the African Development Bank Group and financed by the Capital Market Development Trust Fund (CMDTF) of the Bank.
Agama, represented by Executive Commissioner Operations SEC, Bola Ajomale, noted that in addition to the critical steps outlined, there is a need for a paradigm shift in business activities by directing financial flows towards more sustainable and climate-friendly solutions, divesting from unsustainable practices, setting frameworks, and integrating green finance into investment decisions and practices. He underscored the need for collaboration among stakeholders, including investors and regulators, to align investment practices with environmental, social, and governance (ESG) principles.
Ajomale pointed out that Nigeria has made significant strides with green bond initiatives, noting that the Federal Government issued the first sovereign green bond in Africa in December 2017. The Commission also approved two green bond issues by North South Power Services Ltd and Access Bank Plc worth N8.56 billion and N15 billion respectively to finance various infrastructural projects in the power, water, and agriculture sectors of the Nigerian economy.
“The onus, therefore, lies with every stakeholder to continue to expand these issuances by locating a need and fashioning appropriate sustainable financing products to meet them,” he urged.
He affirmed the Commission’s continuous support to deliver coordinated and coherent policy advice and regulatory oversight to build the momentum for a green economy, which would bring socially inclusive and environmentally sound economic transformation.
In his remarks, Executive Director of Climate Transition Limited, Olumide Lala, highlighted the increasing impact of climate change. “The message today is for us to invest in assets and infrastructure that are climate-efficient. If you look around today, the impact of climate is upon us, affecting our food security, our way of life, and even our country’s security as people are moving from place to place in search of a better life,” he stated.
Emphasizing the importance of the event, Lala added, “This is an opportunity to educate the market on the benefits as well as the risks. But more importantly, how to turn the risks into opportunities.”